Construction projects typically involve very specific expectations. Property owners want to repair damage or renovate part of a building. They hire a company capable of performing the work necessary to make those improvements.
Much of the time, construction projects begin with clear budgets and timelines, and only minimal disruptions arise. Other times, surprising issues can derail a project and lead to scope creep.
Construction professionals and business owners may need to address the possibility of unexpected issues coming to light during construction work to protect against defect claims and other controversies.
Latent defects can complicate projects
Existing edifices may have a variety of issues, from noncompliant electrical supply to foundation problems. Those problems may not be the main focus of a construction project. In fact, the company providing the quote may be unaware of those issues until work actually begins on the project.
By that point, they may have already locked in a timeline for performing the work and committed to a price quote. In cases where the issues are serious enough to require immediate attention, it may be necessary to renegotiate with the property owner to address the expanding scope of the project.
Unexpected defects can lead to increased material and labor expenses, as well as an increased timeline. Provided that a contract adequately addresses the possibility of latent defects turning up and the need to modify the project accordingly, it may be possible to avoid disputes brought by clients who are frustrated by delays and suddenly increased estimates for the overall price of the project.
Ensuring that construction contracts adequately protect a company and that communication with clients conveys the seriousness of latent defects can minimize the likelihood of disputes and litigation that may arise in the middle of a project or after project completion. Unexpected defects can complicate projects and may, therefore, require consideration when establishing contracts with new clients.